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2021-12-31-accounts

Company number: 03072475 Charity Number: 1050146

The Pony Club

Report and consolidated financial statements For the year ended 31 December 2021

The Pony Club

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 2 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 14 Consolidated statement of financial activities (incorporating an income and expenditure account) .................................................................... 19 Balance sheets .............................................................................................................................. 20 Consolidated statement of cash flows ........................................................................................... 21 Notes to the financial statements ................................................................................................. 22

1

The Pony Club

Reference and administrative information

For the year ended 31 December 2021

Company number 030702475 Country of incorporation United Kingdom Charity number 1050146 Country of registration England and Wales Registered office and operational address The Pony Club Lowlands Equestrian Centre Old Warwick Road Shrewley Warwickshire CV35 7AX Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Mr T R G Vestey Chairman Mrs C M G Valori Vice Chairman Mr N J Howlett Treasurer Ms J E Baynes Mrs D Custance-Baker Mr P W Freedman Mr A W James Mrs E P Lowry Key management Mr Marcus Capel Chief Executive personnel Ms Heidi Lockyer Deputy Chief Executive Ms Sue Woolnough Finance Manager Mrs Beryl Stringer Head of Membership and Technology Mrs Michelle Tompkinson Head of Marketing (resigned 31[st] Dec 2021) Bankers Barclays Bank Plc 105 The Parade, Leamington Spa, CV32 4AZ Solicitors DWF LLP One Snowhill, Birmingham, B4 6GA Auditor Sayer Vincent LLP Chartered Accountant and Statutory Auditor Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

The Trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 2 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

The Pony Club Articles of Association define its charitable objects as being:

To promote and advance the education and understanding of the public and particularly young people, in all matters relating to the horse, its environment, exercise and well-being, its sporting and recreational use and attributes and to promote and advance the acquisition and distribution of knowledge of all matters concerning the horse (including the welfare and breeding of horses and ponies); and

To educate and assist young people through their leisure activities so as to assist in the development of their physical and mental activities to help them to maximise their potential and better enable them to grow to full maturity as individuals and full and confident members of society - in particular by the provision of instruction for young people into riding, and care of horses, ponies and other animals.

Deriving from, and consistent with these charitable objects The Pony Club Charitable Purpose and Strategic Objectives are:

Charitable Purpose

To promote and advance the education and understanding of the public and particularly children and young people, in all matters relating to horsemanship and the horse.

To encourage the development of sportsmanship, unlocking potential by building resilience, confidence, teamwork and leadership skills.

To support and develop the volunteering network to strengthen The Pony Club community and sustain life-long engagement with equestrianism.

Strategic Report

Strategic Objectives

Membership

To grow membership by 10% by 2025.

To demonstrate the social, sporting and leadership impact of The Pony Club.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

To contribute to British Equestrian’s initiative to improve diversity within equestrian sport. To develop global opportunities for members, coaches and volunteers within The Pony Club International Alliance, the Euro Pony Club and our overseas Branches and Centres.

Charity

To raise the profile of The Pony Club and emphasise its charitable status.

To be the leading provider of horsemanship education and training for children and young people in the UK.

To communicate The Pony Club’s contribution to society in order to build visibility, trust and respect.

To teach children and young people the skills they need for a horse or pony in their care to thrive. To ensure responsible horse ownership and management is at the forefront of our riding activities and to embed the mental, physical and emotional requirements of the horse in all training activity. To be inclusive and accessible to children and young people from all walks of life.

Volunteers

To ensure that The Pony Club is the organisation of choice for people wishing to support children and young people in an equestrian setting.

To enhance the reputation of The Pony Club as the most trusted and rewarding volunteer organisation in equestrianism in the UK.

To promote the concept of One Pony Club across our whole community.

Sustainability

To maintain a sustainable financial framework with appropriate infrastructure.

To attract and retain sufficient capable and motivated people (staff and volunteers) to meet the needs of our organisation.

To operate within an appropriate legal and regulatory framework.

To nourish The Pony Club Governance structure, providing informed, transparent decisions and clear communications.

Membership

Membership of The Pony Club is open to anyone aged 25 and under. The Pony Club has 325 Branches throughout the United Kingdom and affiliated Pony Clubs in many overseas countries. The Pony Club relies on Membership income and entry fees for events in order to cover its operating costs. In setting the level of fees and charges, the Trustees give careful consideration to the accessibility and diversity of The Pony Club.

The Pony Club operates a Centre Membership Scheme, open to those who do not own their own ponies. The Centre Membership Scheme suffered a downturn during the Covid-19 restrictions which lead to a decline in the number of participating riding schools, which fell from 450 to 420 in 2021.

The Pony Club aims to support and promote fun, friendship, horsemanship and sport.

4

The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

Members’ Activities

The primary function of every Branch and Centre is to teach Members to ride and care for their horse or pony, using qualified and approved coaches who teach at rallies and camps.

The Pony Club runs a formal efficiency test scheme from E through to A. It also awards a set of achievement badges which recognise and reward the acquisition of knowledge relating to individual aspects of pony care, first aid, farming, and various sports, thereby helping Members learn and develop. The Pony Club monitors tests taken and badges awarded as measures of its success as a training organisation.

Competitions

Branches and Centres also organise competitions where Members can compete as individuals or in teams against other branches or centres. The ability to deal with success and failure both individually and within a team is central to the ethos of The Pony Club and is a fundamental life skill. Local and Regional competitions act as qualifying rounds for annual, national and/or international championships.

Coaches

All coaches are accredited and must partake in training, an approval process and continuing professional development. A list of approved coaches is maintained by The Pony Club and all branches and centres. The Pony Club encourages Members to aspire to become coaches and has a well-established coaching development programme. This benefits The Pony Club and the Members themselves, providing further skills and the opportunity to generate income as an instructor. The Pony Club is also able to share accredited coaches from other member bodies of British Equestrian. The Pony Club monitors participation in the coaching development programme as another measure of its success as a training organisation.

Volunteers

The Pony Club remains hugely indebted to the unpaid officials who run the affairs of its 325 Branches and to the many thousands of unpaid volunteers who assist in the huge variety of activities staged by branches. Volunteers are also the main workforce for the Pony Club Championships. The Pony Club recognises volunteers who serve the Pony Club for 20 years or more through its Cubitt Award Programme.

Membership

As at 31 December 2021, The Pony Club had 23,026 (2020: 21,523) Branch members and 9,340 (2020: 6,912) Centre members. Branch, and in particular Centre, membership numbers were adversely affected by the Covid-19 crisis, though Centre membership has bounced back reasonably strongly. One of the strategic objectives is to halt the decline and initiate growth in

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

membership numbers, which has been achieved during the course of 2021, albeit from a low, Covid affected base.

Members’ Activities

Tests

In 2021 circa 4,600 members passed a test, a significant fall from previous levels of circa 8,000 tests, entirely related to Covid-19 restrictions. No test is compulsory and all members have the support they need to achieve success. Online learning material continues to be developed so members can study in their own time as well as joining branch, centre and regional learning. The Pony Club achievement badges were reviewed and bolstered in the early months of 2021 and a similar exercise is underway in respect of the A – E Tests in 2022.

Competitions

The competition culture amongst branches and centres continues to recover post Covid. The Pony Club competition schedule seeks to impart to members the skills required for competitive careers in show jumping, eventing, dressage, mounted games, tetrathlon, polocrosse, polo, pony racing and endurance. The full spectrum of qualifying competitions were delivered in 2021, culminating in the staging of The Pony Club Championships in August, which were held for the first time at Offchurch Bury near Leamington Spa. More than 2,000 members enjoyed competing at the Championships, which were physically and financially successful against a backdrop of widespread Covid-related cancellation of equestrian competitions throughout the UK. These were the first Pony Club Championships staged for three years, with many learning points gleaned for the 2022 renewal.

Coaches

All Pony Club coaches must have a first aid certificate, be DBS cleared, attend a safeguarding course and commit to their continuing professional development. Each branch monitors its coaches to ensure they are up to date and The Pony Club monitors the register of coaches to maintain high standards.

Many Pony Club members graduate to careers in the equestrian sphere and the grounding they gain in The Pony Club is well respected. Hard work, team work, horsemanship, sportsmanship and high standards of riding and teaching set Pony Club members apart. At a time when the standard required by employers is increasingly high, Pony Club members are well placed for success. Current and past members are professional riders, veterinary surgeons and nurses, horse dentists, farriers, grooms and work in diverse roles in the racing industry. The skills learned in The Pony Club are also transferable to careers outside the equestrian world.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

Volunteers

The spectrum of Pony Club members, parents, coaches, centre proprietors and volunteers is multi-generational and family based, often engaging several generations of the same family in one place or at one event. The culture of volunteering remains extraordinarily strong and the sense of belonging to and ownership of The Pony Club pervades all components of this spectrum.

The Pony Club seeks to encourage young people to volunteer in the equestrian sector and to facilitate the attainment of Duke of Edinburgh Awards through Pony Club participation. To this end, a growing number of members participate in YELA (Young Equestrian Leader Award).

Beneficiaries of our services

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. The Trustees consider how planned activities will contribute to the aims and objectives that have been set.

The main beneficiaries of The Pony Club are the Members who continue to develop as riders and learn about the care and welfare of horses and ponies.

Developing rounded, well-educated Members also benefits the whole equestrian sector by providing knowledgeable candidates for careers in horse related spheres. It is notable that a high proportion of those shortlisted to represent Great Britain in equestrian sports in the 2021 Tokyo Olympics were ex-Pony Club members. Nevertheless, irrespective of competitive prowess, the skills imparted by The Pony Club of teamwork, sportsmanship, horsemanship, kindness, resilience, dedication and independent thought are valuable life skills for all members. Many friendships gained through participation in Pony Club activities endure for life.

Fund Raising

The Pony Club does not engage in public fundraising activities by professional fund raisers or commercial participators.

Financial review

The consolidated financial statements including The Pony Club and its subsidiary trading company (The Pony Club Trading Ltd) for the year ended 31 December 2021 are presented. The financial statements comply with all statutory requirements and the requirements of The Pony Club’s Memorandum and Articles of Association.

The Pony Club recorded a surplus for the year of £785k (2020: £101k). Income from subscriptions grew to £2,337k (2020: £1,853k), training to £5,166k (2020: £3,227k) and competitions to £2,549k (2020: £980k). Total income increased to £11,246k (2020: £6,784k). The lifting of

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

Covid-19 restrictions in 2021, which prohibited most normal Pony Club activity for many months in 2020, accounts for much of this growth in income, so the comparison between years is not particularly relevant. Expenditure on training recovered to £7,164k (2020: £4,868k) and on competitions to £2,888k (2020: £1,478k). Total expenditure increased to £10,461k (2020: £6,683k). Careful cost control means that despite the dramatic upheavals of the last two years, an acceptable surplus for the year has again been achieved.

In addition to the income derived from membership subscriptions and competition entry fees mentioned earlier in this report, additional income is derived from a small number of sponsorship arrangements and infrequently from legacies. Pure fund-raising activities do not make a meaningful or regular contribution to income.

Pony Club Trading Limited recorded a surplus for the year of £120k before distribution under Gift Aid.

Our database management system has been live since late 2020. The database management system remains as an intangible asset with a capitalised value of £206k.

The Pony Club three year agreement with Harry Hall to supply Pony Club branded goods to members, branches and centres expired during 2021. A new agreement with Wainwrights Screenprint replaces the Harry Hall arrangement.

The Pony Club can only function because of the generous support given by unpaid District Commissioners, Treasurers, Area Representatives and other volunteers who run the 325 branches and 19 areas. In accordance with the provisions of the Memorandum and Articles of Association of The Pony Club, no remuneration is paid to any of the Trustees. Volunteers receive reimbursement of reasonable expenses.

A large proportion of The Pony Club’s net assets are held by Branches and are used by them for the benefit of Members. Branch funds have been treated as designated funds in the Balance Sheet. All assets are available to fulfil the obligations of The Pony Club in the future. The analysis of group net assets between funds are detailed in note 23.

Principal risks and uncertainties

The Trustees consider the following to be the principal risks and uncertainties facing The Pony Club and have taken the following steps to address them:

Contagious Viruses and Diseases

The devastating impact of Covid on the activities of The Pony Club in 2020, which continued into 2021, has the potential to be repeated via other diseases within the human or equine population, with the potential for government restrictions to impact in a materially adverse manner on membership activities. Cost control is paramount should such an event occur again.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

Loss of Membership

The gradual, long-term decline in membership translates into a reduction in income which has provided challenges to the continued operation of The Pony Club for many years. The Trustees and the Senior Leadership team are pursuing a strategy to attract new and to retain existing members. The success of this strategic objective is not assured.

Loss of volunteers and associated knowledge, experience and skills.

The Pony Club is heavily reliant on volunteers. It recognises and supports its volunteers both at local, regional and national level. However, committing time to Pony Club volunteering becomes harder for many each year. The use of technology to assist the staging of events is increasingly in evidence, which does reduce the burden on volunteers.

Adverse publicity and reputational damage

There is a risk that the activities of employees, volunteers, members and members’ families could potentially bring the organisation adverse publicity. This risk is minimised by training for volunteers, staff and members and by promoting readily accessible codes of conduct. Potentially damaging behaviour is dealt with promptly with support from senior volunteers and employees where necessary.

Reliance on Information Technology

The reliance on information technology presents an inevitable risk to The Pony Club. Significant investment in the new membership database, maintaining cyber security and complying with GDPR regulations continued throughout 2021 and will be an on-going feature of and cost to the business in future years.

Financial

The Pony Club is exposed to financial risks as a result of its day to day activities and could potentially face financial losses from events, legal action or further declines in membership. To manage these risks The Pony Club holds insurance policies and monitors its reserves carefully. The Pony Club Trustees have strengthened central reserves in 2021 to facilitate robust financial health and to cope with as many foreseeable and un-foreseeable risks, costs or losses as possible.

Reserves Policy and going concern

At 31 December 2021, the unrestricted funds of the Charity totalled £8,172k (2020: £7,362k). Of this sum £6,994k (2020: £6,726k) represents funds held by Branches and Areas leaving £1,175k held in central reserves (2020: £632k) and £4k (2020: 4k) held by The Pony Club Trading Limited.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

The Pony Club Office needs to fund working capital and in order to be able to address unforeseen risks and circumstances the Trustees believe that the unrestricted reserves retained centrally should equate to six month’s expenditure. Office expenditure during the year amounted to £2,104k so total central reserves were equivalent to a more desirable 6.5 months expenditure (2020: 4.5 months).

The Trustees conclude that it is appropriate to treat The Pony Club as a going concern.

Plans for the future

The Strategy for 2020 – 2025 with the four defined pillars of Members, Charity, Volunteers and Sustainability is the framework within which The Pony Club will operate for the next five years. Membership growth will be dependent on the retention of existing members and recruitment of new members.

As the environment in which we operate continues to be challenging, the principles and objectives contained in the strategy will ensure that The Pony Club continues to be an efficient, trusted and relevant organisation focused on supporting children and young people in the equestrian world.

The Pony Club remains a vibrant organisation at branch level and many branches provide outstanding training and social opportunities. The skills acquired by young people at Pony Club rallies, camps and training as well as in competitive situations equip members for life beyond Pony Club.

Structure, governance and management

The Pony Club is a charitable company limited by guarantee, incorporated in England and Wales on 26 June 1995 and registered as a charity on 1 January 1997.

The company is established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.

The Pony Club Trading Limited was incorporated in England and Wales on 16 December 1996, as a wholly owned subsidiary of The Pony Club. The results of that company are consolidated within these financial statements.

Structure

For the purpose of administration, the United Kingdom is divided into 19 Areas and local Branches are grouped into Areas. The District Commissioners in each Area elect a voluntary Area Representative to co-ordinate and assist the activities of these Branches.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

The Centre Membership Scheme began in 1998, designed for children who do not have their own ponies. It operates in conjunction with established riding centres, which have been approved by The Pony Club to participate in the scheme. They provide instruction and the additional benefits of Membership to young people who do not have their own pony.

Governance

The Board of Trustees is the ultimate authority of The Pony Club. Reporting to the Board are the Management Committee and the Chief Executive.

The Management Committee is responsible for the full range of equestrian activities, including Branch and Centre Membership, tack, dress, tests and competitions. The Trustees delegate their functions relating to equestrian activities of The Pony Club to committees. These committees are Training, Health & Safety, Centre Membership, Eventing, Show Jumping, Dressage, Mounted Games, Tetrathlon, Polo, Polocrosse, Endurance and Pony Racing. Each Committee generally appoints two Area Representatives to be committee members.

The Chief Executive is an employee of The Pony Club, responsible for administering the activities of The Pony Club and the Office within the policies and procedures established by the Board of Trustees and the Management Committee, and in accordance with statutory requirements and the approved budget.

Third Party Indemnity Insurance is in place in respect of the Trustees (as directors of the company).

Appointment of Trustees

Trustees of the charity are also company directors as a matter of company law.

In accordance with the Articles of Association of The Pony Club, the Board of Trustees is responsible for the appointment of Trustees. Any Trustee who is appointed by the Board of Trustees will hold office until the next AGM or EGM, at which the Members of The Pony Club determine whether to re-appoint them as Trustees for a three-year term.

Trustees are appointed in accordance with the Articles of Association of The Pony Club. Two Trustees are appointed by the Area Representatives. Other Trustees are appointed by the Board of Trustees who also nominate the Treasurer of The Pony Club and a Trustee to represent Centre members. Trustees are eligible for reappointment, subject to a maximum term of nine years.

When there are vacancies for Trustees, these vacancies are advertised and applications are invited. The Trustees then review the applications and appoint new Trustees in line with the Articles of Association.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

Trustee Induction and training

New Trustees attend a training day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the strategic plan, and the recent financial performance of the charity. During the induction day they meet key employees.

Related parties and relationships with other organisations

The Pony Club has a wholly owned subsidiary undertaking, The Pony Club Trading Limited.

Remuneration policy for key management personnel

Remuneration of key members of staff is reviewed by the Trustees annually, with reference being made to CPI and market rates of pay within comparable companies.

Statement of responsibilities of the Trustees

The Trustees (who are also directors of The Pony Club for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2021

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

The Trustees are Members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report which includes the strategic report was approved by the Trustees on 25 August 2022 signed on their behalf by

T R G Vestey Chairman

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Independent auditor’s report

to the Members of

The Pony Club

Opinion

We have audited the financial statements of The Pony Club (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on The Pony Club’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

14

Independent auditor’s report

to the Members of

The Pony Club

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

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Independent auditor’s report

to the Members of

The Pony Club

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

16

Independent auditor’s report

to the Members of

The Pony Club

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

17

Independent auditor’s report

to the Members of

The Pony Club

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor) 6 September 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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The Pony Club

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Restricted
£
48,185
-
-
-
-
-
-		 2021
Total
£
636,929
2,337,183
5,166,839
2,548,904
154,346
4,489
397,444		 Unrestricted
£
447,903
1,853,281
3,227,613
980,257
59,081
6,334
115,634		 Restricted
£
73,242
-
-
-
-
-
20,688		 2020
Restated
Total
£
521,145
1,853,281
3,227,613
980,257
59,081
6,334
136,322
11,197,949 48,185 11,246,134 6,690,103 93,930 6,784,033
408,928
7,090,416
2,887,833		 -
73,581
-		 408,928
7,163,997
2,887,833		 336,909
4,868,073
1,478,135		 -
-
-		 336,909
4,868,073
1,478,135
10,387,177 73,581 10,460,758 6,683,117 - 6,683,117
810,772
-		 (25,396)
-		 785,376
-		 6,986
73,452		 93,930
(73,452)		 100,916
-
810,772
7,361,560		 (25,396)
29,184		 785,376
7,390,744		 80,438
7,281,122		 20,478
8,706		 100,916
7,289,828

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 24a to the financial statements.

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The Pony Club

Company no. 03072475

Balance sheets

As at 31 December 2021

As at 31 December 2021
Balance sheets		 As at 31 December 2021
Balance sheets		 As at 31 December 2021
Balance sheets		 Company no. 03072475 Company no. 03072475
Restated
2021
2020
Note
£
£
Fixed assets:
13
247,189
317,271
14
1,202,447
1,179,157
15
-
-
1,449,637
1,496,428
Current assets:
17
-
160,985
18
607,143
509,063
19
60,091
60,095
20
7,168,179
6,234,640
7,835,413
6,964,782
Liabilities:
21
1,108,930
1,070,467
6,726,483
5,894,316
8,176,120
7,390,744
24a
3,788
29,184
6,993,594
6,725,925
3,833
3,834
1,174,905
631,801
Total unrestricted funds
8,172,332
7,361,560
8,176,120
7,390,744
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
General funds
Non-charitable trading funds
Designated funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investment in subsidiary undertaking
Bank current accounts and cash in hand
Short term deposits
Tangible assets
The group
Intangible assets
Total funds		 Restated
2021
2020
£
£
247,189
317,271
1,202,447
1,179,157
2
2
The charity
1,449,637
-
607,143
60,091
7,168,179		 1,496,428
160,985
509,063
60,095
6,234,640		 1,449,639
-
665,231
60,091
7,066,906		 1,496,430
160,985
574,968
60,095
6,161,638
7,835,413
1,108,930		 6,964,782
1,070,467		 7,792,228
1,069,584		 6,957,686
1,067,206
6,726,483 5,894,316 6,722,643 5,890,480
8,176,120 7,390,744 8,172,281 7,386,910
3,788
6,993,594
3,833
1,174,905		 29,184
6,725,925
3,834
631,801		 3,788
6,993,594
-
1,174,899		 29,184
6,725,925
-
631,801
8,172,332 7,361,560 8,168,493 7,357,726
8,176,120 7,390,744 8,172,281 7,386,910

Approved by the trustees on 25 August 2022 and signed on their behalf by

T R G Vestey Chairman

20

The Pony Club

Consolidated statement of cash flows

For the year ended 31 December 2021

Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Loss on disposal
Amortisation
Impairment
Investment income
Decrease / (increase) in stock
(Increase)/decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
Analysis of cash and cash equivalents
Bank and building society deposits and investments
Cash at bank and in hand
Total cash and cash equivalents
(Repayments) of borrowing
Cash flows from operating activities
Cash flows from financing activities:
Net cash used in investing activities
Cash flows from investing activities:
Interest from investments
Purchase of Intangible assets
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net cash (used in) financing activities
Change in cash and cash equivalents in the year		 £
£
785,376
289,119
861
70,082
-
(4,489)
160,984
(98,080)
38,463
1,242,315
4,489
(313,270)
-
(308,780)
-
-
933,535
6,294,735
7,228,270
At 1 January
2021
Cash flows
£
£
60,091
-
6,234,645
933,534
2021		 £
£
785,376
289,119
861
70,082
-
(4,489)
160,984
(98,080)
38,463
1,242,315
4,489
(313,270)
-
(308,780)
-
-
933,535
6,294,735
7,228,270
At 1 January
2021
Cash flows
£
£
60,091
-
6,234,645
933,534
2021		 £
£
100,916
270,643
1,014
33,138
108,000
(6,334)
52,713
(84,370)
317,333
793,052
6,334
(195,335)
(61,313)
(250,314)
(986)
(986)
541,752
5,752,983
6,294,735
Other changes
At 31
December
2021
£
£
-
60,091
-
7,168,179
2020		 £
£
100,916
270,643
1,014
33,138
108,000
(6,334)
52,713
(84,370)
317,333
793,052
6,334
(195,335)
(61,313)
(250,314)
(986)
(986)
541,752
5,752,983
6,294,735
Other changes
At 31
December
2021
£
£
-
60,091
-
7,168,179
2020
1,242,315
(308,780)
-		 793,052
(250,314)
(986)
- (986)
At 1 January
2021
£
60,091
6,234,645		 Other changes
£
-
-
933,535
6,294,735		 541,752
5,752,983
7,228,270 6,294,735

Cash flows
£
-
933,534		 At 31
December
2021
£
60,091
7,168,179
6,294,736 933,534 - 7,228,270

21

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Statutory information

The Pony Club is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary The Pony Club Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. The accounts are prepared as full values however are presented to the nearest £1. This may cause small discrepancies in the financial statements.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Sufficient reserves are held centrally and across the organisation and the trustees have a reviewed a rolling 24 months cash flow forecast in order to make this judgement which show no significant risk to the going concern position.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been left to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Accounting for Branches and Areas

Accounting for Branches and Areas is done on a 'cash accounting basis' with any single debtor or creditor in excess of £5k being accounted for.

22

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity based upon their proportional incomes.

j) Allocation of support costs

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on revenue.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of revenue for each activity.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Items are capitalised where intangible assets generated exceed the value of £1,000. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Intangible assets will be amortised over a straight line basis over 5 years.

23

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

over 50 years over 4 years over 3 to 5 years over 2 years over 1 to 10 years over the life of the lease

n) Investments in subsidiaries

Investments in subsidiaries are at cost.

o) Stocks

No stock is held as at 31st December 2021. The stock held as at the end of 2020, is stated at the lower of cost and net realisable value. Cost being determined on a first in first out basis including transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

p) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

q) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

r) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

s) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

t) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

u) Taxation

The Pony Club is a registered charity and as such is exempt from income and corporation taxes under the provisions of the Income and Corporation Taxes Act 1998.

v) Defined pension contribution scheme

Pension contributions are charged to income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either prepayments or accruals in the balance sheet.

24

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

2
Income from donations and legacies		 acies
Unrestricted
£
4,774
-
583,970
-
588,744
3
Unrestricted
£
1,626,997
315,132
292,661
53,151
41,302
7,940
Sub-total for Subscriptions
2,337,183
73,101
4,966,585
127,152
Sub-total for Training
5,166,839
403,490
1,807,623
337,791
Sub-total for Competitions
2,548,904
10,052,926
4
Unrestricted
£
154,346
154,346
Income from charitable activities
Central training income
Overseas Branch affiliation fees
Central competition income
Branches competition income
Areas training income
Areas competition income
Centre affiliation fees
Sponsorship, sale of
merchandise and commission
Government Grant -
Coronavirus Job Retention
Scheme
Branches training income
Branch subscriptions
Branch gift aid
Centre subscriptions
Centre gift aid
Income from other trading activities
Total income from charitable
activities
Donations income
BEF Grant Income
Branch fundraising income		 Unrestricted
£
4,774
-
583,970
-		 £
-
48,185
-
-
Restricted		 2021
Total
£
4,774
48,185
583,970
-		 Unrestricted
£
2,609
-
410,663
34,632		 £
-
73,242
-
-
Restricted		 2020
Restated
Total
£
2,609
73,242
410,663
34,632
588,744 48,185 636,929 447,903 73,242 521,145
£

-

-

-

-

-

-
Restricted		 2021
Total
£
1,626,997
315,132
292,661
53,151
41,302
7,940		 Unrestricted
£
1,298,662
203,555
315,178
31,449
4,438
-		 £

-

-

-

-

-

-
Restricted		 2020
Total
£
1,298,662
203,555
315,178
31,449
4,438
-
2,337,183
73,101
4,966,585
127,152
-

-

-

-		 2,337,183
73,101
4,966,585
127,152		 1,853,281
41,394
3,048,379
137,840		 -

-

-

-		 1,853,281
41,394
3,048,379
137,840
5,166,839
403,490
1,807,623
337,791
-

-

-

-		 5,166,839
403,490
1,807,623
337,791		 3,227,613
15,395
902,961
61,901		 -

-

-

-		 3,227,613
15,395
902,961
61,901
2,548,904
-		 2,548,904 980,257 - 980,257
10,052,926
-		 10,052,926 6,061,151 - 6,061,151
£
-
Restricted		 2021
Total
£
154,346		 Unrestricted
£
59,081		 £
-
Restricted		 2020
Restated
Total
£
59,081
154,346 - 154,346 59,081 - 59,081

25

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

5
Unrestricted
£
4,489
4,489
6
Unrestricted
£
48,497
328,607
20,339
397,444
Other income
Central bank interest received
Areas other income received
Central other income received
Branches other income received
Income from investments
Branches bank interest received		 Unrestricted
£
4,489		 £
-
-
Restricted		 2021
Total
£
-
4,489		 Unrestricted
£
1,254
5,080		 £
-
-
Restricted		 2020
Total
£
1,254
5,080
4,489 - 4,489 6,334 - 6,334
Restricted
£
-
-
-		 2021
Total
£
48,497
328,607
20,339		 Unrestricted
£
30,821
81,997
2,816		 Restricted
£
-
20,688
-		 2020
Restated
Total
£
30,821
102,685
2,816
397,444 - 397,444 115,634 20,688 136,322

26

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

Analysis of expenditure (current year)
Costs directly allocated to charitable activities:
Costs of camps, rallies and other training events
Costs of competitions
Support costs directly attributable to activities:
Staff costs, travel and other expenses
Meeting costs
Area representatives
Centre membership
Young Equestrians
Branch running costs
Insurance
Legal and professional
Fundraising and publicity
Support costs directly attributable by usage:
Staff costs, travel and other expenses
Meeting costs
Irrecoverable VAT
Central depreciation
Impairment
Premises costs
Office costs
Accountancy and payroll
Other expenses
Governance costs
Support costs
Total expenditure 2021
Total expenditure 2020		 Cost of
raising funds
£
-
-
-
-
669
-
-
147,481
-
-
123,030
-
-
-
-
-
-
-
-
-		 Charitable activities Governance
costs
£
-
-
34,330
-
-
-
-
-
-
80,878
-
-
-
-
-
-
-
-
-
-		 Support costs
£
-
-
-
-
-
-
-
-
-
-
-
516,464
-
73,030
76,493
-
292,965
62,632
166,906
73,793		 2021
Total
£
5,211,831
1,878,474
129,651
1,522
6,686
70,670
356
1,474,807
220,570
80,878
123,030
516,464
-
73,030
76,493
-
292,965
62,632
166,906
73,793		 2020
Total
£
3,335,073
693,312
106,766
1,617
5,112
56,418
557
898,084
210,050
98,965
148,616
513,806
887
68,053
45,696
108,000
134,472
50,587
157,098
49,948
Training
£
5,211,831
-
19,168
1,005
4,012
70,670
356
884,884
145,576
-
-
-
-
-
-
-
-
-
-
-		 Competitions
£
-
1,878,474
76,152
518
2,006
-
-
442,442
74,994
-
-
-
-
-
-
-
-
-
-
-
271,179
11,521
126,228		 6,337,502
69,125
757,370		 2,474,586
34,562
378,685		 115,208
(115,208)
-		 1,262,283
-
(1,262,283)		 10,460,758
-
-		 6,683,117
-
-
408,928 7,163,997 2,887,833 - - 10,460,758 6,683,117
336,909 4,868,073 1,478,135 - -

27

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

Analysis of expenditure (prior year) 1 1
Costs directly allocated to charitable activities:
Costs of camps, rallies and other training events
Costs of competitions
Support costs directly attributable to activities:
Staff costs, travel and other expenses
Meeting costs
Area representatives
Centre membership
Young Equestrians
Branch running costs
Public liability insurance
Indemnity insurance
Legal and professional
Fundraising and publicity
Support costs directly attributable by usage:
Staff costs, travel and other expenses
Meeting costs
Irrecoverable VAT
Central depreciation
Impairment
Premises costs
Office costs
Accountancy and payroll
Other expenses
Governance costs
Support costs
Total expenditure 2020		 Cost of
raising
funds
£
-
-
-
-
-
-
-
64,139
-
-
-
148,616
-
-
-
-
-
-
-
-		 Charitable activities Governance
costs
£
-
-
-
-
-
-
-
-
-
14,028
98,965
-
-
-
-
-
-
-
-
-
-		 Support costs
£
-
-
-
-
-
-
-
-
-
-
-
-
513,806
887
68,053
45,696
108,000
134,472
50,587
157,098
49,948		 2020
Total
£
3,335,073
693,312
106,766
1,617
5,112
56,418
557
898,084
196,022
14,028
98,965
148,616
513,806
887
68,053
45,696
108,000
134,472
50,587
157,098
49,948
Training
£
3,335,073
-
43,033
1,067
3,374
56,418
557
554,252
129,375
-
-
-
-
-
-
-
-
-
-
-
-		 Competitions
£
-
693,312
63,733
550
1,738
-
-
279,693
66,647
-
-
-
-
-
-
-
-
-
-
-
-
212,755
11,299
112,855		 4,123,149
67,796
677,128		 1,105,673
33,898
338,564		 112,993
(112,993)
-		 1,128,547
-
(1,128,547)		 6,683,117
-
-
336,909 4,868,073 1,478,135 - - 6,683,117

28

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 289,119 270,643
Loss on Disposal 861 (87,157)
Amortisation 70,082 33,138
Impairment - 108,000
Operating lease rentals:
Property 67,333 55,300
Other 4,490 5,315
Auditor's remuneration (excluding VAT):
Audit 20,000 19,400
Other services 1,300 850

9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Casual and temporary staff costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Health and life insurance costs		 2021
£
668,082
65,243
48,345
7,550
9,154		 2020
£
636,459
60,709
32,657
32,052
19,109
798,374 780,986

Staff costs (as above plus travel costs) have been included under Accountancy & Payroll, £166,906 (2020: £157,098), Staff costs directly attributable to activities, £129,651 (2020: £106,766) and Staff costs directly attributable by usage £516,464 (2020: £512,779).

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
£ £
£70,000 - £80,000 1 1

The total employee benefits (including employer pension contributions and employer's national insurance) of the key management personnel were £303,921 (2020: £277,366). The organisation considers key management personnel to be the Chief Executive, the Deputy Chief Executive. Finance Manager, Head of Marketing and Head of Membership and Technology.

No trustee remuneration was paid to any trustees during the year. Trustees' expenses were reimbursed to 2 (2020: 2) trustees during the year.

Trustees' expenses represents the payment or reimbursement of costs as follows:

2021 2020
£ £
Travel and subsistence costs 1,387 1,215

29

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Fundraising
Other central functions
Training
Competitions		 2021
No.
0.6
2.5
3.0
14.4		 2020
No.
1.2
2.2
2.0
15.9
20.5 21.3

The full-time equivalent average number of employees during the year was as follows:

Other central functions
Fundraising
Training
Competitions		 2021
No.
0.6
2.5
3.0
13.2		 2020
No.
1.2
2.2
2.0
14.6
19.4 20.0

11 Related party transactions

Andrew James (Trustee) – payments made to Mrs S James (wife) in relation to the supply of rosettes £30 (2020: £385) and payments made to Mrs K Treharne (daughter) for coaching within Pony Club branches. This was an arm's length transaction and Mr James has had no involvement in the procurement of coaches for any of the Pony Club Branches concerned. No balance is outstanding for these transactions at year end.

Tim Vestey (Trustee) – also a director of Thurlow Estate Farms Ltd (TEFL). Payments are made to TEFL for services provided and the use of facilities for Pony Club events (£4,102) (2020: £5,139) and payments are also made by TEFL (£290) (2020: £1,462) for the use of Pony Club cross country schooling facilities. At 31.12.20 TEFL was owed £nil (2020: £3,000) by the Pony Club in respect of the above transactions. Note – the £3000 owed at the end of 2020 was accrued in the pony club accounts as the licence agreement runs from April to March. In 2021 no amounts were accrued as the accounts were prepared on a cash basis for the first time. No income was accrued on 2020.

Aggregate donations from related parties were £0 (2020: £Nil).

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary The Pony Club Trading Limited gift aids any available profits to the parent charity. Its charge to corporation tax in the year was:


tax in the year was:
2021 2020
£ £
UK corporation tax at 19% - -

30

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

Charge for the year
At the end of the year
The group and charity
Cost
At the start of the year
Additions in year
Net book value
At the end of the year
At the start of the year
At the end of the year
Amortisation
At the start of the year		 CRM
£
390,296
-
Website
£
68,113
-		 Total
£
458,409
-
390,296 68,113 458,409
127,515
56,459		 13,623
13,623		 141,138
70,082
183,974 27,245 211,219
206,322 40,868 247,189
262,781 54,490 317,271

The group and charity

The group and charity
Net book value
Cost
Charge for the year
Eliminated on disposal
At the start of the year
Disposals in year
At the start of the year
At the end of the year
At the end of the year
Depreciation
At the end of the year
At the start of the year
Additions in year		 Freehold
property
£
782,520
-
-
Fixtures and
fittings
£
10,757
-
-
Computer
equipment
£
1,355,658
61,593
(191,285)
Motor vehicles
£
2,678,170
251,676
(18,421)		 Total
£
4,827,105
313,270
(209,706)
782,520 10,757 1,225,966 2,911,425 4,930,669
63,124
2,184		 2,490
636
-		 1,241,602
84,381
(191,193)		 2,340,732
201,917
(17,653)		 3,647,948
289,119
(208,846)
65,308 3,126 1,134,791 2,524,996 3,728,221
717,212 7,631 91,175 386,429 1,202,447
719,396 8,267 114,056 337,438 1,179,157

All of the above assets are used for charitable purposes.

A small number of Branches hold land which is not depreciated, the total value of freehold land is c£615k .

31

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

15 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of The Pony Club Trading Limited, a company registered in England (Registered address Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX - company number 3294943). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

Turnover
Total retained earnings carried forward
Retained earnings
Assets
Liabilities
Distribution under Gift Aid to parent charity
The aggregate of the assets, liabilities and reserves was:
Total retained earnings brought forward
Reserves
(Loss) / Profit for the financial year
Profit / (loss) for the financial year
Total comprehensive income for the year
Taxation on profit on ordinary activities
Cost of sales
Profit / (loss) on ordinary activities before taxation
Gross profit/(loss)
Administrative expenses		 2021
£
154,346
(6,529)		 2020
£
59,082
(66,875)
147,817
(27,661)		 (7,792)
(4,206)
120,156
-		 (11,998)
-
120,156 (11,998)
3,836
120,156
-
(120,156)		 15,835
(11,999)
-
-
3,836 3,836
187,040
(183,202)		 82,651
(78,813)
3,838 3,838

Amounts owed from/to the parent undertaking are shown in notes 18 and 21 respectfully.

16 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

17
Goods for resale and issue to members
Stock
Result for the year
Gross income		 2021
£
-
The		 2020
£
160,984
group		 2021
£
11,228,617
785,377		 2020
£
6,726,657
110,415
2021
2020
£
£
-
160,984
The charity
- 160,984 - 160,984

32

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

Debtors
Trade debtors due after one year
Trade debtors due within one year
Amount owed by subsidiary undertaking
Prepayments and accrued income		 2021
£
68,497
101,159
-
437,487
The		 2020
£
68,497
74,718
-
365,848
group		 2021
2020
£
£
68,497
68,497
15,391
65,068
143,857
75,552
437,487
365,848
The charity
607,143 509,063 665,231 574,965

With the exception of the debtor described below, all of the group’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in notes 18, 19 and 20 below.

Trade debtors includes a long term debtor of £68,497 (2020: £68,497). This represents the ownership percentage that one of The Pony Club's branches has in a local riding school, measured at fair value. It is not anticipated to be sold within the next 12 months.

19 Short term deposits

Short term deposits
Branches
Central		 2021
£
-
60,091
The		 Restated
2020
£
4
60,091
group		 Restated
2021
2020
£
£
-
4
60,091
60,091
The charity
60,091 60,095 60,091 60,095

20 Bank current accounts and cash in hand

Bank current accounts and cash in hand
Branches
Trading subsidiary
Central		 2021
£
1,586,455
5,480,450
101,273
The		 2020
£
768,531
5,393,108
73,002
group		 2021
2020
£
£
1,586,455
768,531
5,480,450
5,393,108
-
-
The charity
7,168,179 6,234,640 7,066,906 6,161,638

21 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Funds held on account
Accruals
Other loans
Taxation and social security
Other creditors
Trade creditors
Deferred income (note 22)		 2021
£
-
161,669
22,990
28,937
291,228
-
604,106
The		 2020
£
3,624
213,967
11,419
34,521
200,078
22,583
584,274
group		 2021
2020
£
£
-
3,624
160,619
213,206
22,990
11,419
28,937
34,521
288,728
220,161
-
568,310
584,274
The charity
1,108,930 1,070,467 1,069,584 1,067,206

33

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

22 Deferred income

Deferred income comprises of income received for branch and centre membership and events taking place in the following financial year and .

2021
£
Balance at the beginning of the year
584,274
Amount released to income in the year
(582,868)
Amount deferred in the year
602,700
Balance at the end of the year
604,106
General
unrestricted
£
13,275
247,190
918,273
1,178,738
The
Net current assets
Tangible fixed assets
Intangible assets
Analysis of group net assets between funds (current year)
Net assets at 31 December 2021		 2021
£
584,274
(582,868)
602,700
The		 2020
£
310,315
(310,315)
584,274
group		 2021
2020
£
£
584,274
310,315
(582,868)
(310,315)
566,905
584,274
The charity		 2021
2020
£
£
584,274
310,315
(582,868)
(310,315)
566,905
584,274
The charity
604,106 584,274 568,310 584,274

£
1,189,172
-
5,804,422
Designated
funds		 Restricted
funds
£
-
-
3,788
Total funds
£
1,202,447
247,190
6,726,483
1,178,738 6,993,594 3,788 8,176,120

23a Analysis of group net assets between funds (current year)

23b Analysis of group net assets between funds (prior year)

Net current assets
Intangible assets
Tangible fixed assets
Net assets at 31 December 2020		 General
unrestricted
£
14,855
317,271
303,508
£
1,164,302
-
5,561,623
Designated
funds		 Restricted
funds
£
-
-
29,184
Total funds
£
1,179,157
317,271
5,894,315
635,635 6,725,925 29,184 7,390,744

24a Movements in funds (current year)

Total restricted funds
General funds
Restricted funds:
Total funds
Total unrestricted funds
Unrestricted funds:
Other funds
Sport England
Designated funds:
Non charitable trading
Branch / Area funds		 £
(210)
29,394
At 1 January
2021		 £
48,185
-
Income &
gains
 £
(47,947)
(25,634)

Expenditure &
losses		 £
-
-

Transfers		 £
28
3,760
At 31 December
2021
29,184 48,185 (73,581) - 3,788
6,725,925
3,834
631,801		 9,248,798
34,189
1,914,962		 ~~-~~
(8,981,129)
(34,190)
(1,371,858)		 -
-
-		 6,993,594
3,833
1,174,905
7,361,560 11,197,949 (10,387,177) - 8,172,332
7,390,744 11,246,134 (10,460,758) - 8,176,120

The narrative to explain the purpose of each fund is given at the foot of the note below.

34

The Pony Club

Notes to the financial statements

For the year ended 31 December 2021

24b Movements in funds (prior year)

Total restricted funds
General funds
Total unrestricted funds
Sport England
Unrestricted funds:
Designated funds:
Restricted funds:
Other funds
Branch / Area funds
Non charitable trading
Total funds		 £
-
8,706
At 1 January
2020		 £
73,242
20,688

Income &
gains		 £
-
-

Expenditure &
losses		 £
(73,452)
-

Transfers		 £
(210)
29,394
At 31 December
2020
8,706 93,930 - (73,452) 29,184
6,767,148
15,833
498,141		 6,284,124
59,081
346,898		 (6,325,347)
(71,080)
(286,689)		 -
-
73,452		 6,725,925
3,834
631,801
7,281,122 6,690,103 (6,683,116) 73,452 7,361,560
7,289,828 6,784,033 (6,683,116) - 7,390,744

Purposes of restricted funds

Other funds represent funds received by individual branches or headquarters for specific projects as defined by the donor.

Purposes of designated funds

Branch funds represent accumulated reserves of the individual Branches and Areas of The Pony Club. Although these reserves form part of the unrestricted funds of The Pony Club, Trustees recognise that in normal circumstances the funds will be used by the individual Branches to further the objectives of The Pony Club within their geographical area of activity. New designations represent income during the year and utilised funds represent expenditure for the year.

Non charitable trading funds are the reserves of the trading subsidiary.

25 Operating lease commitments payable as a lessee

The group's and the charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:


each of the following periods:
Less than one year
One to five years		 2021
2020
£
£
29,500
55,300
54,083
110,600
Property		 2021
2020
£
£
366
5,315
1,403
-
Equipment
83,583 165,900 1,769 5,315

26 Explanation for prior year restatement

Short term deposits in the 2020 financial statements have been reclassified as cash at bank and in hand due to the funds being immediately available. In addition to this, the charity decided to reclassify branch fundraising income from other income into donations and legacies. The net impact of these restatements to the net movement in funds is nil.

27 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The members of the company are the trustees named on page 2, plus the members of the Equestrian Council and the Branch Operations Directors. The liability of each member in the event of winding up is limited to £1.

35